MSME Registration

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.

Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act. Though the MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for lower rates of interest, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment subsidies and other support. IndiaFilings can help your business obtain MSME Registration to avail a host of benefits.

Reasons to Register a MSME

MSME Registration

MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits and access to subsidies and schemes.

Small Enterprise

A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

Registration Criteria

To be classified as a MSME, Enterprises in the Manufacturing sector need to have less than Rs.10 crores of investment in plant & machinery; service Enterprises must have an investment of less than Rs.5 crores of investment in plant & machinery.

Medium Enterprise

A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

Micro Enterprises

A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

Identity and Address Proof

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof

All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

What is MSME Registration?

MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits such as interest rate concessions, tax benefits and access to a range of subsidies and schemes, aimed at developing MSMEs.

Who can obtain MSME Registration?

MSME Registration can be obtained by business in the manufacturing or service sector. To be classified as a MSME, Enterprises in the Manufacturing sector need to have less than Rs.10 crores of investment in plant & machinery; service Enterprises must have an investment of less than Rs.5 crores of investment in plant & machinery.

What is a Micro Enterprise under the MSMED Act?

A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

What is a Small Enterprise under the MSMED Act?

A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

What is a Medium Enterprise under the MSMED Act?

A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

What are some of the benefits of MSME Registration?

MSME Registration has a range of benefits implemented as subsidies, schemes and incentives. Enterprises registered with the MSMED Act enjoy interest rate concession and their borrowing is classified under Priority Sector Lending. Enterprises registered with the MSME act are also allowed to avail a number of subsidies and schemes floated by the State and Central Government. Some of them include, subsidy for ISO registration, subsidy for obtaining International patents, subsidy for participating in tradeshow, subsidy for implementing barcode on Products, etc.,

What are the documents required for MSME registration?

To obtain MSME registration, proof of address of business, proof of identity of the promoters and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required. Additional documents may be required based on the State in which the MSME Registration is sought.

How long does it take to obtain MSME registration?

MSME Registration process is state specific. Therefore based on the state, the MSME Registration processing time differs. MSME Registration can typically be obtained in 10 ï¿½ 15 working days.

What is the validity of a MSME Registration?

MSME Registration is first provided as a Provisional Registration Certificate with a validity of 5 years. Once, the unit has commenced production, a Permanent Registration Certificate is issued which is valid for lifetime of the entity.

What if my Enterprises crosses the investment threshold of the MSME Act,?

If the business grows and investments more than Rs.10 crores in plant and machinery in case of manufacturing entity and more than Rs.5 crores in plant and machinery in case of service entity, the enterprise should apply for de-registration.

Note: Udyog Aadhaar Registration is provided free of cost by the Government. IndiaFilings does not charge any money for Udyog Aadhaar or MSME registration. The fee mentioned below is professional fee for TAN registration and access to our iCFO platform.

SIMPLE & TRANSPARENT PRICING

Basic

Rs.2899/-

all inclusive fees

TAN Registration for startups and LEDGERS accounting software. Assistance in obtaining MSME registration. MSME registration or Udyog Aadhaar is provided for free by the Government. You can visit the Udyog Aadhaar website directly for free MSME registration. Inclusive of all government fee and taxes.

INDIAFILINGS

India's Largest Business Services Platform

OUR MISSION

We help Entrepreneurs start and operate successful businesses

IndiaFilings.com is India's largest online business services platform dedicated to
helping people easily start and manage their business, at an affordable cost. Our aim is to help
the entrepreneur on the legal and regulatory requirements, and be a partner throughout the
business lifecycle, offering support at every stage to ensure the business remains compliant and
continually growing.

IndiaFilings.com partners with a network of experienced Chartered Accountants,
Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Ex-Bankers and Financial
Experts across India to provide a comprehensive range of services for small and medium sized
enterprises.

Reasons to choose IndiaFilings

IndiaFilings is a Google Partner. Google Partners are tasked with helping businesses market their service or products online.

IndiaFilings.com is a winner of Red Herring Top 100 Asia Award. Red Herring recognizes promising companies from across the world.

Red Herring Award

IndiaFilings is a CRISIL Verified Business. CRISIL is a subsidiary of Standards & Poor, a leading International Rating Agency.

CRISIL Verified

In The Media

LEARNING CENTER

We have put together an amazing collection of article, guides, videos and business tips in our Learning Center. Planning to start a business or need legal help? Visit the IndiaFilings Learning Center and you will find articles and guides on a wide range of topics. Feel free to share our articles and bookmark the IndiaFilings Learning Center.

Vibrant Team

A talented workforce that works in collaboration with a network of over 6000+ Professionals.

24/7 Support

Get support through phone, email, mobile app or live chat - 24/7, 365 days.